lon Musk’s social media platform X experienced a 2.2% decline in advertising revenue during the second quarter of 2025, dropping to approximately $707 million despite earlier optimism following Donald Trump’s election victory.
Revenue Recovery Stalls After Initial Post-Election Gains
The second-quarter decline represents a reversal from the momentum X gained in early 2025, when major advertisers began returning to the platform following Trump’s presidential victory and Musk’s increased political influence. While the Q2 figures still show a 20% increase compared to 2024, the quarterly drop indicates that advertiser confidence remains fragile.
X’s revenue trajectory continues to lag significantly behind pre-Musk acquisition levels. In 2022, Twitter’s final year before the takeover, the platform generated $4.4 billion in revenue. Under Musk’s leadership, this declined to $3.4 billion in 2023 and further to $2.6 billion in 2024. Current projections suggest X will reach approximately $2.9 billion in total revenue for 2025.
Subscription Strategy Falls Short of Projections
The platform’s diversification efforts beyond advertising have yielded mixed results. X Premium subscriptions generate an estimated $200 million annually, falling far short of Musk’s original vision for financial independence from advertiser spending. The planned “X Money” payment system remains stalled due to regulatory approval delays.
With annual debt servicing costs of $1.2 billion, X operates near break-even levels, nowhere close to Musk’s ambitious 2028 projection of $26.4 billion in revenue. The platform has merged with xAI to ensure financial stability, with the AI company expected to generate $500 million in 2025 revenue, rising to $2 billion in 2026.